Daily Forecast for EUR/JPY: January 17

By IBT Staff Reporter On 01/17/11 AT 3:59 AM

EURJPY Forecast

The EURJPY was able to maintain its bullish bias on Friday but corrected lower today traded around 110.30 at the time I wrote this comment. The bias is neutral in nearest term but still within the context of a bullish reversal scenario after the break out above the trend line resistance with 111.60 as the nearest bullish target. Immediate support at 110.00 followed by 109.50. A break below 109.50 could lead us to neutral area as direction would become unclear and would re-open the door to the downside testing 107.60 support area.

GBPJPY Forecast

The GBPJPY was volatile on Friday but overall still maintain its strong bullish outlook, still targeting 133.00 especially if price able to make another strong break above 131.85 area. Immediate support at 130.40. Break below that area could lead us to neutral zone in nearest term but as long as price stays above 129.30 I still prefer a bullish scenario at this phase.

AUDUSD Forecast

The AUDUSD had a significant bearish momentum on Friday and slipped below 0.9885 today after failed to break above 1.0o20 resistance area. The bias is bearish in nearest term testing the double bottom formation around 0.9800 but note that we are still in consolidation phase and need a clear break below 0.9800 to continue the bearish scenario and re-activate my bearish mode targeting 0.9550 this week. On the upside, immediate resistance at 0.9915 (current high). Break above that area could lead us to neutral zone in nearest term and keep the double bottom bullish scenario intact re-testing 1.0020 area.